It’s all too easy to fall into bad credit shape. One credit card becomes two, you apply for a third to help with paying the bills on time, and you quickly find yourself in a cycle of minimum repayments and seemingly never-ending debt. It’s a trap that can cost you thousands of dollars in extra interest repayments. Unfortunately, missed repayments and loan defaults lead to a bad credit file and therefore, bad credit rating.
A poor credit rating often leads to problems with borrowing more money, but that doesn’t mean that you won’t be able to find debt solutions. Even when you have a bad credit rating, there are debt consolidation loans available.
You can consolidate your debts into a single periodical payment, even if you have bad credit from a few missed repayments. Debt consolidation is one way to keep on top of your payments and reduce debt if you have more than one account you’re paying interest on. This can prevent your finances from spiralling further out of control.
How does debt consolidation work?
Australia as a country is very reliant on credit, so it is a very common occurrence that people find themselves in a position of credit card debt. If the above scenario is familiar, you may be looking for debt help. The first step is speaking with a broker to assess your financial situation.
A broker can tailor a credit card loan repayment scheme based on what you can afford. Once a repayment schedule and budget has been set, they will source a lender for you, to make the process of consolidating your bad debts easy and stress free. It’s best to find a financial solutions company that works with you to find the most economic option available to consolidate your debt and help you avoid bankruptcy.
If used wisely, debt consolidation loans can improve your credit rating in the long run. Primarily, this includes ensuring that the interest rate for this loan is less than the average interest rate of your other debts, and making consistent repayments on time.
Credit card debt consolidation options for bad credit
It is wise to seek a specialist at securing debt solutions that will help bring your repayments back under control and repair your credit health. Depending on the severity of your situation, but even if you have bad credit, a number of solutions can be implemented, including:
- Credit card consolidation loans
- Credit card debt management
- Formal and informal Debt Agreements
- Financial advice and debt counselling
As well as debt consolidation, there is help available for you if you suffer from bad credit history, such as:
- Impartial advice on improving your credit score
- Assistance with obtaining a bad credit loan
- Ongoing assistance with finance management and credit repair
If you need a fast and effective solution to get out of credit card debt, contact Debt Negotiators.